Impact fund strengthens investment thesis and secures nearly $170 million in second fund, almost doubling the $88 million raised in Fund I
OAKLAND, Calif., May 16, 2023 — Illumen Capital, an impact fund of funds addressing systemic inequity by reducing racial and gender bias in investing, has successfully raised a $168 million Fund II, allowing the firm to further scale its efforts to build a more optimal and inclusive asset management industry.
Illumen Capital II, LP will combine its investment capital with evidence-backed tools and strategies designed to help fund managers reduce racial and gender bias, while aiming to optimize their financial performance.
“Following our nation’s racial reckoning in the summer of 2020, institutional investors made bold proclamations of investing in diverse managers and entrepreneurs; unfortunately funding of diverse-led entities has receded drastically over the past year,” said Daryn Dodson, Managing Director of Illumen Capital. “Today’s close of Illumen Capital’s Fund II reflects the strength of our thesis, limited partners’ trust in the firm’s differentiated strategy, and the incredible value that overlooked and underestimated managers can bring to investors.”
Ford Foundation, and W.K. Kellogg Foundation led the fund, which had capital from over 100 investors, showcasing a breadth of interest and belief in Illumen Capital’s mission of leveraging powers as investors to reduce bias in venture capital and private equity decision-making.
“Advancing equity and inclusion in asset management goes beyond breaking down barriers and diversifying the talent in the field. It’s about broadening perspectives, expanding ideas, and strengthening strategies for better outcomes across the board,” said Ford Foundation Head of Mission Investments Roy Swan. “Illumen Capital’s evidence-backed approach to help fund managers optimize their performance is much needed, and this round of funding signals that the strategy is working.”
Illumen Capital’s Fund II was oversubscribed, surpassing the initial target by nearly $20 million, enabling the firm to further scale its efforts developed following the completion of its $88 million Fund I. Showcasing a high conviction in thesis and strategy, this fund seeks to invest across four themes: Education, Health & Wellness, Climate & Sustainability and Financial Inclusion. Furthermore, Fund II aims to deepen relationships with many managers from Fund I, creating stronger leverage points surrounding their active engagement in bias reduction work.
About Illumen Capital
Illumen Capital is a Black-owned and led manager dedicated to achieving racial and gender equity across investing. Illumen Capital invests in venture, growth and private equity funds, and then works closely with fund managers to install a set of strategies and tools designed to reduce racial and gender bias in the hiring, investment, and company support processes. This research-informed bias reduction program – developed through a strategic relationship with Stanford SPARQ – empowers fund managers to expand their investable landscape and better support entrepreneurs who have historically been overlooked and underestimated.
NOTICE TO RECIPIENTS
THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE. This document has been prepared by Illumen Capital Management, LLC (“Illumen”) and is not intended to be (and may not be relied on in any manner as) legal, tax, investment, accounting or other advice or as an offer to sell or a solicitation of an offer to buy any securities of any investment product or any investment advisory service. The information contained in this document is superseded by, and is qualified in its entirety by, such offering materials. This document may contain proprietary, trade-secret, confidential and commercially sensitive information. U.S. federal securities laws prohibit you and your organization from trading in any public security or making investment decisions about any public security on the basis of information included in these materials.
REFERENCES MADE TO ENDORSEMENTS BY ANY THIRD-PARTY PROVIDER TO INVESTMENT WITH ILLUMEN ARE NOT INDICATIVE OF FUTURE PERFORMANCE AND DOES NOT IMPLY ANY GUARANTEED LEVEL OF SERVICE, SKILL OR TRAINING. Investors should not rely on endorsements for any purpose and should conduct their own review prior to investing.
THIS DOCUMENT IS NOT A RECOMMENDATION FOR ANY SECURITY OR INVESTMENT. References to any portfolio investment are intended to illustrate the application of Illumen’s investment process only and should not be used as the basis for making any decision about purchasing, holding or selling any securities. Nothing herein should be interpreted or used in any manner as investment advice. The information provided about these portfolio investments is intended to be illustrative and it is not intended to be used as an indication of the current or future performance of Illumen’s portfolio investments.
AN INVESTMENT IN A FUND ENTAILS A HIGH DEGREE OF RISK, INCLUDING THE RISK OF LOSS. There is no assurance that a Fund’s investment objective will be achieved or that investors will receive a return on their capital. Investors must read and understand all the risks described in a Fund’s final confidential private placement memorandum and/or the related subscription documents before making a commitment. The recipient also must consult its own legal, accounting and tax advisors as to the legal, business, tax and related matters concerning the information contained in this document to make an independent determination and consequences of a potential investment in a Fund, including US federal, state, local and non-US tax consequences.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS OR A GUARANTEE OF FUTURE RETURNS. The performance discussed in this document is not necessarily indicative of future performance, and you should not assume that investments in the future will be profitable or will equal the performance of past portfolio investments. Investors should consider the content of this document in conjunction with investment fund quarterly reports, financial statements and other disclosures regarding the valuations and performance of the specific investments discussed herein.
DO NOT RELY ON ANY OPINIONS, PREDICTIONS, PROJECTIONS OR FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. Certain information contained in this document constitutes “forward-looking statements” that are inherently unreliable and actual events or results may differ materially from those reflected or contemplated herein. Illumen does not make any assurance as to the accuracy of those predictions or forward-looking statements. Illumen expressly disclaims any obligation or undertaking to update or revise any such forward-looking statements. The views and opinions expressed herein are those of Illumen as of the date hereof and are subject to change based on prevailing market and economic conditions and will not be updated or supplemented.
SOURCE Illumen Capital
